Onetime billionaire and "effective altruist" Sam Bankman-Fried altruized a $16.4m house to his Ivy League professor parents, paid for with money from his crypto exchange and hedge fund. A lawsuit, filed by the molten remains of FTX, wants it liquidated.
FTX's lawsuit against Bankman and Fried was filed in US Bankruptcy Court for the District of Delaware as part of bankruptcy proceedings involving FTX and Alameda Research. "Bankman and Fried siphoned millions of dollars out of the FTX Group for their own personal benefit and their chosen pet causes. This action seeks to hold them accountable for their misconduct and recover assets for the Debtors' creditors," the lawsuit claimed.
According to the lawsuit, mummy and daddy "either knew—or ignored bright red flags revealing—that their son, Bankman-Fried, and other FTX Insiders were orchestrating a vast fraudulent scheme to profit and promote their personal and charitable agendas."
Sam Bankman-Fried's trial, on federal fraud charges, begins in two weeks. His bail was revoked and he was returned to jail after attempting to influence witnesses earlier this summer. Known as "SBF," he became famous for a know-it-all attitude extending to his own legal predicament and beyond; his first lawyers, unable to convince him to pause his eternal self-explanatory TED tour, spectacularly quit.